Hess 2008 Annual Report Download - page 37

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The Corporation anticipates $3.2 billion in capital and exploratory expenditures in 2009, of which $3.1 billion
relates to E&P operations.
Consolidated Results of Operations
The after-tax results by major operating activity are summarized below:
2008 2007 2006
(Millions of dollars,
except per share data)
Exploration and Production ................................. $2,423 $1,842 $1,763
Marketing and Refining.................................... 277 300 394
Corporate .............................................. (173) (150) (110)
Interest expense ......................................... (167) (160) (127)
Net income ............................................. $2,360 $1,832 $1,920
Net income per share — diluted .............................. $ 7.24 $ 5.74 $ 6.08
In the discussion that follows, the financial effects of certain transactions are disclosed on an after-tax basis.
Management reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in
segment earnings. Management believes that after-tax amounts are a preferable method of explaining variances in
earnings, since they show the entire effect of a transaction rather than only the pre-tax amount. After-tax amounts
are determined by applying the income tax rate in each tax jurisdiction to pre-tax amounts.
The following table summarizes, on an after-tax basis, items of income (expense) that are included in net
income and affect comparability between periods. The items in the table below are explained, and the pre-tax
amounts are shown, on pages 25 through 27.
2008 2007 2006
(Millions of dollars)
Exploration and Production ...................................... $(26) $(74) $173
Marketing and Refining ........................................ —24 —
Corporate ................................................... —(25) —
$(26) $(75) $173
21